A Backward Procedure Is a Type of Equation Building Procedure

question 62

True/False

A backward procedure is a type of equation building procedure that begins with all potential explanatory variables in the regression equation and deletes them two at a time until further deletion would reduce the percentage of variation explained to a value less than 0.50.

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Definitions:

Total Assets

The sum of all resources owned by an entity that are recognized as having economic value.

Net Income

The total profit of a business after all expenses and taxes have been deducted from total revenue.

Internal Growth Rate

The maximum rate at which a company can expand using only its own sources of funding without resorting to external financial options.